Member Article

Rents rise at fastest rate since September

Rents are marching upwards at the fastest pace since last autumn, and have reached the highest levels seen so far this year, according to the latest Buy-to-Let Index from Your Move and Reeds Rains.

Average rents for homes to let across England & Wales have now reached £793 per month, as of April 2016

On a month-on-month basis this represents an increase of 0.3% – or the fastest monthly rent rises since September 2015.

This leaves rents 2.4% higher than at the same point last year – or an extra £19 every month for the average tenant.

A strong acceleration in market rents comes on the back of what was previously a relatively subdued month, when rents saw no change between February and March 2016.

Adrian Gill, director of lettings agents Your Move and Reeds Rains, comments: “Anyone looking for a home to rent may now find the better deals of the winter months are over. Landlords are seeing renewed interest and competition between potential tenants, as the spring rental market accelerates.

“Some of the reasons for rent rises are extremely encouraging. Tenants looking to find a property to rent are more likely to be in work, getting pay rises, and feeling able to pay their other bills. These wider economic fundamentals are shifting on the side of healthier household finances.

“But very little has changed in terms of the supply of homes to let. So for many tenants, it’s likely that a large proportion of any earnings growth is swallowed up by higher rents. And the Government hasn’t helped by imposing an extra bill that someone will have to pay on top of this – in the form of the recent Stamp Duty Surcharge. To a large extent it’s likely that penalty will be shouldered by those tenants looking for homes to rent, due only to the fundamentals of supply and demand in the British housing market.”

To read full Your Move England & Wales Buy to Let report click here.

This was posted in Bdaily's Members' News section by Property Editor .